Sensex and Nifty slip as investors track oil prices and global market trends (Img: pinterest)
Mumbai: The BSE Sensex rose 0.21% to 72,630.43, while the NSE Nifty 50 advanced 0.27% to 22,575.65 in early trade. The positive opening followed Friday’s recovery, when the Sensex climbed 879 points, snapping a prolonged weekly losing streak.
Broader markets also showed early strength, with small-cap and mid-cap stocks gaining. However, the market mood remained cautious as investors assessed the impact of elevated oil prices, foreign fund outflows and continuing geopolitical uncertainty.
Crude oil prices declined in early trading, offering some relief to Indian equities. Brent crude futures fell around 1.5% to approximately $103 per barrel, while US West Texas Intermediate crude slipped to around $90.31.
The decline followed reports of a proposed halt to attacks on Russian and Ukrainian energy infrastructure, raising hopes of improved supply conditions. Lower crude prices are generally positive for India because the country relies heavily on imported oil.
However, oil prices remain elevated, and any fresh escalation in the Middle East could quickly reverse the gains. Investors are therefore keeping a close watch on developments affecting global energy supplies.
The RBI announced measures over the weekend aimed at reducing pressure on the rupee. These included redirecting oil companies’ dollar purchases away from the spot market and tightening certain hedging rules.
The measures helped the rupee strengthen at the opening, potentially easing concerns over currency volatility and foreign investor sentiment.
Despite the positive start, the rally remained vulnerable. Later in the session, the Sensex slipped more than 200 points and the Nifty moved below the 22,500 mark, highlighting continued volatility.
Investors are expected to track crude oil movements, currency trends, foreign institutional investor activity and corporate earnings announcements for further direction.
